Head-To-Head Analysis: Group 1 Automotive (GPI) vs. Its Rivals

Group 1 Automotive (NYSE: GPI) is one of 20 publicly-traded companies in the “Automotive dealers & gasoline service stations” industry, but how does it contrast to its peers? We will compare Group 1 Automotive to related companies based on the strength of its profitability, analyst recommendations, institutional ownership, dividends, valuation, earnings and risk.

Profitability

This table compares Group 1 Automotive and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Group 1 Automotive 1.89% 15.85% 3.45%
Group 1 Automotive Competitors 3.22% 33.52% 3.60%

Insider and Institutional Ownership

62.1% of shares of all “Automotive dealers & gasoline service stations” companies are owned by institutional investors. 6.1% of Group 1 Automotive shares are owned by company insiders. Comparatively, 16.5% of shares of all “Automotive dealers & gasoline service stations” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for Group 1 Automotive and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Group 1 Automotive 1 7 1 0 2.00
Group 1 Automotive Competitors 115 619 666 28 2.43

Group 1 Automotive currently has a consensus price target of $81.86, indicating a potential upside of 28.67%. As a group, “Automotive dealers & gasoline service stations” companies have a potential upside of 15.39%. Given Group 1 Automotive’s higher probable upside, equities research analysts clearly believe Group 1 Automotive is more favorable than its peers.

Risk & Volatility

Group 1 Automotive has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500. Comparatively, Group 1 Automotive’s peers have a beta of 9.96, indicating that their average share price is 896% more volatile than the S&P 500.

Earnings & Valuation

This table compares Group 1 Automotive and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Group 1 Automotive $11.12 billion $213.44 million 8.23
Group 1 Automotive Competitors $8.01 billion $220.42 million 12.15

Group 1 Automotive has higher revenue, but lower earnings than its peers. Group 1 Automotive is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Group 1 Automotive pays an annual dividend of $1.04 per share and has a dividend yield of 1.6%. Group 1 Automotive pays out 13.5% of its earnings in the form of a dividend. As a group, “Automotive dealers & gasoline service stations” companies pay a dividend yield of 1.6% and pay out 20.5% of their earnings in the form of a dividend. Group 1 Automotive has increased its dividend for 8 consecutive years. Group 1 Automotive is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Summary

Group 1 Automotive peers beat Group 1 Automotive on 11 of the 15 factors compared.

Group 1 Automotive Company Profile

Group 1 Automotive, Inc. is an operator in the automotive retail industry. The Company, through its dealerships, sells new and used cars and light trucks; arranges related vehicle financing; sells service and insurance contracts; provides automotive maintenance and repair services, and sells vehicle parts. The Company operates through three segments: the U.S., which includes the activities of its corporate office, the United Kingdom and Brazil. The Company owned and operated 224 franchises, representing 32 brands of automobiles, at 171 dealership locations and 47 collision centers.

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